illimity: Fitch conferma rating positivi

illimity Bank S.p.A. ("illimity" or the "Bank") announced that Fitch Ratings has confirmed all the ratings assigned to the Bank. In particular, the Long-Term Issuer Default Rating (IDR) has been maintained at "BB-" with a Stable Outlook, and the Long-Term deposits Rating at "BB". The rating agency highlights the Bank's highly specialized business model focused on the SME sector, with a competitive advantage derived from the presence of both cyclical and countercyclical businesses that can support structural profitability.

The credit quality benefits from a high presence of public guarantees, with the gross non-performing loan ratio, net of these guarantees, standing at 1.3%1. The performance of the collections activity remains steady thanks to a very cautious pricing model for non-performing loans. The operating profitability is considered satisfactory and expected to increase in 2024 and 2025, benefiting from the anticipated growth in loan volumes and associated economies of scale. The liquidity profile is considered adequate due to the diversification of funding sources between wholesale and retail, with a predominantly domestic retail funding base consisting of term deposits whose remuneration is linked to market interest rate trends.

Regarding the capital position, it is considered adequate in view of the ample buffer in relation to regulatory minimum requirements.
The complete list of Fitch ratings assigned to illimity is as follows: ? LT IDR: BB- ? ST IDR: B ? Viability: bb- ? Long-Term deposits: BB ? Short-Term deposits: B ? Senior preferred LT: BB- ? Subordinated LT: B

(NEWS Traderlink)